NYT: Seattle as the next Silicon Valley?

“Many communities dream of becoming the next Silicon Valley. This one is actually doing it.”

That’s how John Markoff of The New York Times starts his story today on Seattle’s tech industry, noting that the “Valley vibe” is alive and well in the city’s Fremont and Pioneer Square neighborhoods, where startups are popping up. The story quotes Oren Etzioni and Ed Lazowska of the UW, Tom Alberg of Madrona Venture Group and Walter Smith of Seattle startup Jackson Fish Market.

Does rain create startups? P-I photo: Paul Joseph Brown

I’ve spoken on this topic lately, with a student at the University of Washington technology MBA program asking me at a class this week what the differences are between Seattle and Silicon Valley.

From my vantage point, there are quite a few.

Clearly, the tech ecosystem in Silicon Valley is much larger — more money, more entrepreneurs, more everything. To paraphrase Frank Sinatra, if you can make it there, you can make it anywhere.

But Seattle has attributes that set it far apart from the Valley.

For one, the weather here is conducive to startups. From October to July the climate creates an atmosphere where people want to work — really have to work to keep their sanity.

Also, Seattle entrepreneurs tend to think outside the box with ideas that don’t always follow the typical hot trend. That thought process motivates employees who — more so than the Valley — tend to stick with projects longer. Valuations also aren’t quite as high, which is attractive to Bay Area investors willing to make the flight.

There’s also an independent streak — one highlighted by the fact that Seattleites never felt the need during the dot-com boom to dub the region “Silicon Forest” or “Silicon Sound” or some other Silicon moniker. (Though some folks in the tech industry are currently kicking around ideas to brand the Seattle area).

There are other differences, not pointed out in the Times piece. The tolerance for risk — and failure — is higher in the Valley. The number of IPOs in Washington state — just two last year — is not enough to sustain a true high-tech hotbed. The management talent — though improving over the years — is not as strong as other places. Microsoft’s influence also is undeniable.

It’s always interesting to see how the national media portrays the tech community here.

What do you think about Markoff’s piece and Seattle versus Silicon Valley?